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A break for renters? California considers reining in high security deposits

Original post made on Jun 7, 2023

A bill would hold security deposits to one month's rent, not three. The California Apartment Association says it could drive up rents, making it harder to find a home.

Read the full story here Web Link posted Monday, June 5, 2023, 5:17 PM

Comments (3)

Posted by marc665
a resident of Midtown
on Jun 7, 2023 at 2:51 pm

marc665 is a registered user.

How about starting a tenant registry?

To keep track of renters that pay late, bounce checks, trash places and vacate in the middle of the night, leave without paying rent, have pets when not allowed, sublet, run a airbnb, have too many roommates and all the other things that tenant's do.


Posted by Silver Linings
a resident of Another Palo Alto neighborhood
on Jun 9, 2023 at 3:37 pm

Silver Linings is a registered user.

Under state law, last month’s rent used to be allowed, but it was legally categorized as a security deposit. How does the law impact charging of last months rent?

I can kind of see both sides in this. If someone rents a house to a family, most of the major parts of the home that could be damaged like hardwood flooring could cost tens of thousands to fix or replace and would not be covered by a one-month security deposit. This is going to make people even more reluctant to rent to families with children. Does the new law allow landlords to require rental insurance—and do typical insurance policies even cover damage by tenants? Seems like the kind of thing they would exclude.

Is there a law that landlords have to put deposits in interest-bearing accounts (and give the interest to tenants?) If not there should be.

Posted by Nanette Grissom
a resident of Old Palo Alto
on Jun 13, 2023 at 10:25 am

Nanette Grissom is a registered user.

A simpler solution would be for prospective renters to post bond in lieu of a security deposit.

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